IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

http://www.ifrsbox.com This is the short summary of the standard IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The objective of this standard is to set the criteria and rules for measurement and recognition of provisions, contingent liabilities and contingent assets. Provision is a liability of uncertain timing and amount. It has to be recognized when all following 3 criteria are met: • There must be a present obligation as a result of a past event; • The outflow of economic benefits to satisfy the obligation must be probable (i.e. more than 50% probable) • The amount of economic benefits required to satisfy the obligation must be reliably estimated. IAS 37 also defines contingent liabilities and contingent assets and specifies that these shall not be recognized in the financial statements, but the disclosures must be made. You will also learn how to account for provisions, what are journal entries for provisions, how to measure provisions and about provisions for future operating losses, onerous contracts and restructuring. For more information about IFRS, please visit http://www.ifrsbox.com and subscribe to our free updates.